Interest for defaults in payment of advance tax in case of re-assessment and where additional income is disclosed before the Settlement Commission under section 245C

[Admin TMI]

Question - What are the proposed amendments in section 234B of the Income-tax Act in Finance Bill 2015 ?

AI Summary

Proposed Amendments to Section 234B: Changes in Interest Calculation for Tax Reassessment and Settlement Commission Disclosures The discussion focuses on proposed amendments to section 234B of the Income-tax Act in the Finance Bill 2015. It addresses interest for defaults in advance tax payments during reassessment and when additional income is disclosed to the Settlement Commission under section 245C. Currently, interest is charged from the date of the initial assessment to the reassessment date. The amendment proposes interest calculation from April 1 following the financial year to the reassessment date. Additionally, a new subsection will impose interest on additional income disclosed to the Settlement Commission, effective from April 1 of the assessment year until the application date. These changes are effective June 1, 2015.